Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
When I bought my first home, the seller came in an hour early to sign paperwork so they never had to meet me. The attorney said this was normal for his personality. I found it rude and impersonal. Since then, I've always gone to my closings and met my buyers face to face. Last time, however, the guy's wife shot me a look from hell when the attorney was reading the settlement statement and said the number that I was taking home with me. Just wondering what you other sellers do??
Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
15y
Have you ever asked them to justify their salary and why they are deserving of it? I find it hypocritical that RE investors have to justify their profits. But I'm just ranting.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
I always go to my closings. I like to meet the buyers, hand them my business card, and let them know that if they have any issues with the house they just bought, to give me a call directly. This way they know that I take pride in what I do, and I stand behind my work -- hopefully given that, they won't resent me for making money off of the work I do.
Btw, the business card I give them also has my website -- if they go there, they can find out every detail of the rehab on the house they just bought, including what my profit was, down to the penny.
In the couple cases where the buyers seemed to take notice of the $100K+ check I was walking out of the closing with, I made a point to let the buyers know about the website, so they could see for themselves the work we did (knowing that they'd also see that our profit was far less than the check we received, which they otherwise may never have realized).
Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
15y
Depends on the mood I am in at the time - sometimes I go to the closing other times I take the impersonal out and sign the papers ahead of the Buyers even being there.
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
15y
I have never seen any of my buyers. I thought that's how things are done in the U.S. so I am surprised to hear that some of you have actually seen your buyers. Does it work differently in states where lawyers do the closings than in states like AZ where title companies handle it?
I like the AZ style because there is no need to find a time that is convenient for both buyer and seller. Each of us signs a couple of days before escrow closes and the escrow company wires the funds on the day the deed is recorded. In addition, the escrow company sends a notary to the buyer's place and seller's place, so I do not even go to their office.
Is the practice in the East Coast very different from this?
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
I've done closings in three states, and almost always go. The only times I have the attorneys just send me the paperwork in advance is when I'm buying from a bank.
While I might look at every sale as just a business transaction, I recognize that for my buyers it's a very personal and important occasion and as my customers they deserve for me to treat it as such. It's always well worth the extra hour of time it takes.
Btw, I've even gotten a buyer referral in the past, so the extra time I've spent has more than paid off financially.
Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
15y
I've had the same experience as Bryan. I've gone to closings, only to be treated like a jerk. Once, a double close, I had to listen to comments from both the buyer, and the seller, about my profit margins. Unfortunately, as Jason mentioned, the buyers don't get to see how much of the "profit" went into the rehab. (Even on my double close I had rehab expenses, since I bought it on land contract)
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
15y
A bad closing experience is usually a matter of a lack of communication. Make sure the closing agent does not breath the numbers that apply to you to anyone, there is no reason to say any number out loud if you have buyer and seller in front of you, so instruct the agent to keep their mount shut! And yes, they do need to be told or reminded, as evidenced above.
IMO, it's a very good policy to go to every closing. I have had many things blow up at times and if I had not been there to correct the matter, it would not have closed! Things can happen that you have no clue about until you get there. IE, an attorney/developer sold a property and claimed that there was a listing agent for the lot and and different one for the transaction, while it was no skin off my back, my selling agent would have to give up some commission. The lot listing was with the attorney's girl friend. I stopped the closing dead, the attorney rattled his sabre and I stuck to him and the deal closed as disclosed on the listing I purchased from. (I suggested to him that he could pay his lot commission, maybe in trade, LOL)!
There are all kinds of problems that can pop up with individual buyers. As Jason mentioned, buying from a bank is pretty cut and dry and the "i"s are dotted, or selling to someone you have worked with before and know. In such cases, you can close in escrow without much concern.
If you are selling and using any installment contract or seller financing, you better attend the settlement, the chances of screw ups increases expotentially, and the deal is not done til all the docs are signed and good funds are deposited!
Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
15y
I had no idea people go to closings and meet the buyers. That is interesting. I have never met my buyers. To be honest, I like it best when the title company sends a runner and I can meet them anywhere.
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
15y
justin and vikram, i'm not sure about other states, but at least in north carolina, one attorney handles the closing for the buyers, sellers, and lenders. also in north carolina, the seller chooses the attorney, meaning it's difficult to ask the attorney to not state the amount i'm taking home...
i find it innapropriate at the table to explain to the sellers that the 50,000 they see on the settlement sheet is not really what I'm taking home, after paying rehab, other expenses, and reimbursing my downpayment, but i wish there was some way to make them see it like that.
Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
15y
Have you ever asked them to justify their salary and why they are deserving of it? I find it hypocritical that RE investors have to justify their profits. But I'm just ranting.
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
15y
i agree justin...all i'm saying is the attorney's closing table is not the right time/place in my opinion, if i do decide to show how that 50,000 she sees is not what i get...sadly though, i probably won't ever have another chance, so when the guy's wife gave me the cold stare, i just brushed it off, shook their hand and left with my check.
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
15y
I must say I very much prefer the AZ system where neither party ever sees each other and the HUD-1 is signed a couple of days before closing and there are no uncertainties or emotional issues to deal with on closing date.
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
15y
vikram, for you it's a business, so i understand where you're coming from. i do, however, like jason's approach that it is a very personal and emotional purchase for most homeownes...sometimes, i need to be reminded of that
Real Estate Investor · Orlando, FL · Member since 2009 · 39 posts · 7 votes
15y
I like to "show face" and attend my closings. I feel it is a way sometimes of solidifying the deal. In addition its a great way to continue to do business with that buyer and its a great time to ask for referrals from the seller. Just my opinion.
Happy Investing and Closings to all.
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
15y
I am always shocked when someone ask how much I make on a deal. What difference does it make? If it is a good deal for the buyer, then why should he care. If he does not like how much I make, then he can do it myself is my thought. I have made great $ on some deals and lost $ on deals. The deals that I make great $ is usually b/c I of a relationship that I have with the bank to get the property or marketing efforts to acquire a property from a homeowner. Each of which cost $. I don't think it is any of their business. I didn't ask the Nissan dealership how much money they made on the Maxima I just bought. It seems like it almost taboo to make too much these days. O well, I just keep truckin' along.
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
15y
I've never met a seller or a buyer....and I've gone to all my closing meetings. I did meet a buyers attorney there once and all he told me was, "I love your lease.''
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Btw, the other great reason to attend closings is to build rapport with the buyer's agent. We've had several agents now that have brought us more than one buyer, and this was facilitated by our meeting at the closing, where my wife (my agent) spent a bunch of time building a relationship.
Ultimately, whenever these agents get a new client, they call us first to see what inventory we have because they want to work with us again...
For those who look at this as a business, remember that a successful business is built around customer loyalty (repeat customers and customer referrals)...if you're not attending your buyer closings, you're missing a great opportunity to build a long-term relationship with your customers (both buyers and their agents)...
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
15y
not sure how it works in your state, but in north carolina there's a settlement sheet called the HUD, that both buyer and seller must sign. on the HUD, it direclty states how much money goes to and from both the buyer and seller...the seller won't know the exact amount is profit or loss, but they do see the check you walk away with. i agree, i don't think it's anyone's business, but to give real estate investors a slightly better image, i'd at least like the sellers to know that the 50,000 they think i'm making is really double what i actually made in profits.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Originally posted by Bryan Alenky:
not sure how it works in your state, but in north carolina there's a settlement sheet called the HUD, that both buyer and seller must sign.
The HUD-1 is standard in all 50 states...
And yes, if the buyer looks at the HUD-1, he *will* see how much is coming to you from the settlement of the sale, regardless of whether you happen to be at the same closing table or not...
Btw, if you do happen to be sitting at the table and notice that your buyers get uncomfortable when they see/hear how much you're walking away with, it's easy to just make an off-hand comment about, "I wish that was actually my profit on this...oh well..."
But again, in my experience, if the buyers are getting a great deal on a great house, they won't even notice/care what you're making...
Investor · Westminster, CO · Member since 2009 · 1k+ posts · 1k+ votes
15y
J Scott
On the HUD1 in California, the buyer's copy has the seller's figures BLACKED OUT. On the Seller's copy, the Buyer's Figures are BLACKED OUT. Very simple.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
15y
Vikram,
In PA, we use a title agent, and can either go to the title company's office (cheaper to do), or have the notary come visit you (that was nice when we had 12 inches of snow on a closing I had in Jan 2010).
Different practices for different locations (states in the USA).
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
15y
mike, i wish it was like that in north carolina....when i buy, it's not the seller's business what points i pay, etc. however, they get to see it on the HUD. and when i sell, it's not the buyer's business to know what my payoff is. but that is also on the HUD here, sadly.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Originally posted by Mike M:
J Scott
On the HUD1 in California, the buyer's copy has the seller's figures BLACKED OUT. On the Seller's copy, the Buyer's Figures are BLACKED OUT. Very simple.
Mike -
Thanks for that info...I had no idea...
But that begs the question -- as a buyer or seller, how are you sure that the other party has fulfilled their obligations? For example, let's say a buyer has requested $10K in closing costs to be paid by the seller...if the buyer can't see the seller's side of the HUD, how can they be sure that the closing attorney appropriated the funds correctly and didn't make a mistake?
More importantly, as a buyer, I know how many liens/mortgages the seller has (from the title search)...don't I have a right as a buyer to see on the HUD-1 to verify that those liens have been paid off?
I've seen several HUDs that were incorrect (especially when I'm buying from a bank and the bank's closing agent is an idiot), and if I couldn't see the other side of the HUD, I may never have realized it!
I really wouldn't be happy if I couldn't see both sides of the HUD, even though I agree as a seller it's better for my business (for the reasons we've been discussing in this thread)...